Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rose 0.7% to close near $1,235 after mixed economic data weighed on the dollar, boosting demand for alternative assets. The metal closed the week 0.8% lower for its first weekly loss since March.

U.S. industrial output fell by more than expected in March, posting its sixth loss in seven months as weak growth and the strong dollar continue to hammer the manufacturing sector. Consumer sentiment is down again in April, according to the University of Michigan's preliminary survey, marking its fourth straight monthly decline.

On the positive side, business condition in the New York Fed region picked up to the highest level in more than a year.

The dollar fell back on the net-negative data as traders speculated that the Fed will be less inclined to raise interest rates in coming months. Chicago Fed President Charles Evans said today that inflation should reach or exceed the Fed's target 2% before additional monetary tightening.

The other precious metals were mostly higher for the day and week. Silver jumped 0.9% to finish almost 6% higher for the week. Platinum slid 0.2% but gained 2% this week, while palladium added 1.1% today and 5.4% this week.

At the Comex close: June gold gained $8.10 to $1,234.60; may silver rose 14 cents to $16.31; July platinum slid $3 to $989.90; and June palladium picked up $7.35 to $568.25 an ounce.